DUE DILIGENCE FOR CHEVRON FOR CORPORATE EXCELLENCE AWARD

UNCLAS MANILA 001725 SIPDIS SENSITIVE BUT UNCLASSIFIED STATE FOR EAP/EP STATE FOR EEB/EPPD NSMITH-NISSLEY STATE PASS EXIM, OPIC AND USTR TREASURY FOR OASIA E.O. 12958: N/A TAGS: BEXP EINV ELAB ETRD KSEP SENV RP SUBJECT: DUE DILIGENCE FOR CHEVRON FOR CORPORATE EXCELLENCE AWARD REF: State 78538 ¶1. (U) Post is pleased to learn that Chevron is on the short list for the Secretary's 2009 Award for Corporate Excellence. We believe that Chevron would be an excellent choice for this year's Award for Corporate Excellence and submit the following in response to reftel follow-up questions: A) Are there possible negatives or risks of U.S. embarrassment that could result from the potential selection of your nominee? We are not aware of any information concerning Chevron that would be an embarrassment to the U.S. government. B) Do you have any information concerning job creation in the United States resulting from the operations of company you nominated? The company is headquartered in the U.S. and has investment activities in over 180 countries which generate revenues, employment and economic growth for the U.S. C) What is your assessment of the company's trade and investment activities with regard to helping stimulate economic growth in the U.S. and increasing American exports (what is the U.S. content of its products)? Chevron is the second largest U.S. oil and energy exploration company with over 22,000 U.S. employees. Its operations in the Philippines create a demand for equipment, as well as specialized engineering and management services, provided by its U.S. employees and other U.S. companies. D) What is the state of labor conditions in the company's facilities and are workers unionized? Chevron supports its Philippine labor union and has worked constructively to develop and abide by its Collective Bargaining Agreements. E) Are you aware of any litigation pending in local courts involving the company? We are not aware of any such pending litigation. Mission members involved in Chevron's nomination do not have financial interests in the company. ¶2. (SBU) Caltex is a trademark/brand from Chevron's downstream business unit. In the Philippines, there are four Chevron business units: Chevron Malampaya LLC (upstream natural gas); Chevron Geothermal Philippines Holdings, Inc. (upstream-renewable); Chevron Holdings, Inc. (upstream-renewable),Chevron Holdings, Inc. shared services); and Chevron Philippines Inc. (downstream petroleum marketing for Caltex). KENNEY